Controlling your organisation by using latest treasury and risk management practices

This is a results driven seminar that will help you to attain maximum value from your treasury operation.... Covering:

• Interest rate and foreign exchange risk management

• Measuring treasury performance

• Risk management for credit risk

• Using cash flow modelling

• Maximising capital budgeting

ABOUT:

The complexity of cash management in financial markets has placed more emphasis on the treasury function. This not only involves keeping control over increasingly complex interest rates and currency exposures, but also keeping up with the latest techniques for managing those risks whilst effectively managing the funds of your organisation.

This intensive training course is designed to offer treasury professionals a thorough coverage of the techniques available for treasury management. By ensuring that your treasury system is operating effectively, you will be able to focus on strategic financial management within your organisation.

Key learning objectives

By the end of this course you will be able to:

• Define and design your treasury policy based on your organisation’s key objectives

• Develop risk management techniques for successfully managing credit risk

• Assess the best hedging tools for interest rate risk management

• Implement strategies for managing foreign exchange risk

• Define the criteria for creating accurate cash flow forecasts

• Use cash flow modelling to improve the accuracy of your cash requirement predictions

Training methodology

The emphasis on this course is on learning treasury management tools through practical examples. This intensive two-day training programme will combine tutorial sessions with practical examples throughout, allowing participants to gain first hand experience of effective treasury management skills. All attendees will be provided with a workbook and a certificate of attendance.

Who should attend?

• Corporate Treasurers

• Risk Managers

• Finance Managers

• Financial Controllers

• Financial Accountants

• Group Accountants

Day one

8.30 Registration

Managing the development of your treasury policy

• The purpose and importance of setting treasury policy

• Understanding the environment within which your company operates

• Identifying the business policy and KPIs of your organisation

• Identifying the key risks present in your operating environment

• Assessing the risks in terms of severity and certainty

• Designing your policy based on key objectives and key risks

• Effective techniques for managing implementation, review and control

Practical exercise: Participants will identify the treasury policy of their organisation

Improving treasury performance by implementing best practice procedures

• Working capital improvement

• Risk management

• Reporting and control

• Funding and investing

• Assessing how each of these functions can be improved

• Managing payment and clearing systems - payable and receivables

• Identifying parameters of improvement to maximise funds management

• Performance measurement and management techniques

Practical exercise: Participants will apply best practice techniques

Developing risk management techniques for managing credit risk

• Understanding the risks associated with extending credit

• Which risks can be hedged and which can be controlled?

• Defining credit risk, market risk and operational risk policies

• Assessing the role of the rating agencies and rating grades explained

Practical exercise: Participants will apply risk management techniques

Creating accurate cash flow forecasts

• Successfully defining the necessary criteria for creating accurate cash flow forecasts

• Identifying what your organisation will need to spend money on - examining day-to-day and week-by-week expenditure needs

• Ensuring that your organisation is planning accurately for its liquidity requirements

• Identifying your organisation’s optimum forecasting period

Day two

Effectively using cash flow modelling

• Using cash flow modelling to improve the accuracy of your cash requirement predictions

• Aligning cash flow models with organisational cash objectives

• Understanding the time value of money

• Using discounted cash flows in your financial reporting

• Performing capital budgeting

Optimal capital budgeting & investment decisions

• Capital versus operating expenditure

• What are the budgetary implications of capital budgeting?

• Capital investments as strategic investment decisions

• How should you budget for capital/fixed asset investments?

Practical exercise: Participants will apply capital budgeting techniques

• Common pitfalls of traditional techniques

• Techniques to maximise investment opportunities

Practical exercise: Participants will apply methods to improve cash flows and investment returns

Effectively managing interest rate risk

• Reviewing the best hedging tools for interest rate risk management

• Examining cross-currency interest rate swaps

• Hedging offshore debt issues

• Hedging offshore bond holdings

• Managing risk through the application of swaps, caps and collars

• Assessing structured interest rate options: Sensitivity models

Practical exercise: Participants will evaluate the methods of interest rate risk management

Strategies for managing foreign exchange risk

• Identifying currency exposure

• Hedging foreign exchange transaction exposure

• Evaluating forward contracts, swaps and futures

• Using vanilla and exotic options: Caps, floors, puts, calls

• Examining the derivatives used by New Zealand organisations for managing foreign exchange risk

• Utilising foreign exchange rates as tools for value creation in your business

Practical exercise: Participants will determine the costs and risks among the different methods of foreign exchange risk management